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Amazon 'gazumps' Google to buy gaming site Twitch for $970 million

Amazon is hoping to win over a new generation of customers after ‘gazumping’ Google in a $1 billion deal for a hugely popular video game streaming service.

Online retail giant Amazon has paid $970 million in cash for Twitch, a service that lets people stream game play. Launched in 2011, Twitch attracted 55 million viewers in July.

The majority of Twitch’s user are young, with average age 21, and Ian Maude of Enders Analysis said the deal highlighted Amazon’s drive to capture a new generation of customers. Maude said: “The obvious thing [about the deal] is the connection with games and retail. The deeper connection is probably around strengthening its position with younger audiences.

“There’s a real changing of the guard going on here. For youth audiences it’s all digital, all online.”

Amazon chief executive Jeff Bezos said: “Broadcasting and watching gameplay is a global phenomenon and Twitch has built a platform that brings together tens of millions of people who watch billions of minutes of games each month.”

Google’s YouTube was reportedly in late stage negotiations to acquire Twitch for a similar amount paid by Amazon but the deal fell through, with speculation it may have stalled over anti-competition concerns.

Announcing the deal in a statement on Twitch’s website, chief executive Emmett Shear said: “We chose Amazon because they believe in our community, they share our values and long-term vision, and they want to help us get there faster.”